Akamai to buy Linode for $900 million

Philly-based Linode has agreed to sell to Cambridge-based Akamai for $900 million. Linode, which moved up to Philly from the Jersey shore a few years back, expects revenue near $100 million in the current year .

My impression is that Linode’s recent growth has been steady but perhaps a bit disappointing given the market it operates in. Founder Christopher Aker has famously rejected outsude financing ecxept for equipment leases,
so he’ll do well but may have forfeited some growth.

By comparison, competitor DigitalOcean, founded in 2011, now is worth almost $7 billion.

“There is natural synergy between Akamai and Linode, not only in our missions and cultures, but in the potent combination of strengths we each bring to the table,” said Aker.
“The marriage of Linode’s compute and storage products with Akamai’s serverless, CDN, and security solutions, will give customers a broader range of services to build, modernize, and scale the next generation of applications.”

Linode, founded in 2003, currently employs 238.

Press Release #security